A few years ago Liverpool had just 2,000 hotel beds – now that figure is close to 10,000 with yet another hotel set for approval this week amid record-breaking occupancy figures. Tony McDonough reports
Councillors are expected to give the go-ahead to another new hotel planned for Liverpool city centre when they meet on Tuesday morning with the city’s booming hotels sector showing no signs of slowing down.
Planning officers are recommending approval for the conversion of the Fruit Exchange building in Victoria Street. Grade II-listed, it was originally built as a railway goods depot in 1888.
Liverpool’s booming visitor economy has seen a steady stream of new hotels open over the past few years. That was accelerated following the city’s Capital of Culture year in 2008 and the opening of the waterfront arena and convention complex.
Earlier this year LBN revealed that Liverpool hotel bookings had hit a six-year high. Latest figures from the city council show 982,702 rooms were sold in the city centre in the first six months of 2024. This is the second-best half year (after 2018) since the authority began collecting data in 2004.
And June proved to be a record-breaker. During the month city council data shows there were 180,754 rooms sold in the city centre. This was the best June ever.
Several new hotels have opened in the last couple of years, including the Municipal Hotel in Dale Street and the Novotel in the Knowledge Quarter. In July Ireland’s biggest hotel operator Dalata opened The Maldron, a four-star hotel in Park Lane.
More hotels are already in the pipeline. Peel is actively looking for operators for two plots on Princes Dock next to the cruise liner terminal.
At the beginning of February Liverpool developer Craig Greenwood secured a deal for the Motto by Hilton brand to run the new £35m hotel he is creating in Mathew Street above the famous Cavern Club. It is being backed by property developer JSM.
And it is JSM that is also behind the latest plans for an 81-bed hotel at the Fruit Exchange which has been vacant for a number of years. A similar scheme for the site was approved in 2020 but that has since lapsed.
JSM is looking to convert the upper floors of the building into a hotel that would also include a restaurant bar. There would be a mezzanine level on the top floor of the Mathew Street wing with associated rear extensions.
Detailing the history of the building, the planning report said it became the Fruit Exchange in 1923.
“It added: “Designed to sell fruit which was shipped into the city from around the world, including figs and oranges, the ornate grander of the building depicts the wealth and status associated with the trade.
“The entrance hall is tiled with grey and white tiles, with an almost Art Deco motif, with the flanking offices lined with timber panelling. The entrance hall then leads to the principal auction hall, a highlight of the commercial history of Liverpool.”
It was only a few years ago that Liverpool had just 2,000 hotel beds across a small number of hotels. When the Crowne Plaza opened next to the Pier Head in 1998 it ushered in a new era for the sector in the city.
But it wasn’t until 2008, and Capital of Culture, that the visitor economy really started to take off. The opening of the £1bn Liverpool ONE retail and leisure complex along with the ACC Liverpool arena and convention centre put the city’s visitor economy onto another level.
Today Liverpool city centre has 85 hotels and the number of beds is fast approaching the 10,000 mark. The sector is really motoring now with little signs of any slowdown.
In 2023 Eurovision once again put the city on the global stage and the growth of the hotels sector is now being underpinned by the Accommodation BID (ABID), launched in January 2023. This is funded by a levy paid by the hotels.
For the period September 2023 to September 2024, ABID is investing around £700,000 in its subvention fund, an investment that will yield an estimated £47m in economic benefit to the city centre.
Speaking to LBN in June, Liverpool BID Company chief executive Bill Addy explained the value of the subvention fund which is used to support major conferences at venues such as ACC Liverpool.
He said: “Subvention is a mechanism that conference organisers use to supplement their event. The cost of staging a conference is significant in terms of rental and installation costs.
“They can’t always make that back from the people paying to come to the conference. So the organisers know they can talk to the event’s hosts and look to get support towards the cost.”
The ABID also offers subvention for smaller conferences and arts events. Bill adds there is a strict process in place for which events get funding with a board that assesses every application.
“Hoteliers are giving positive feedback on the BID,” he said. “We have an active board who are fully in support of it. An indication of that is the rate of levy payment and it is more than 90%.
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“We do what we do because we are supporting business visits during the week when the hotels don’t have the same demand they have from the leisure market at the weekend. It fills the rooms during those quieter times in the midweek.
“It is a big plus that Liverpool is back in the Champions League next season. The audience that comes with the Champions League is much better than the Europa League. It is not just the fans, there is a bigger corporate element.
“As soon as the fixture list comes out the hotel rooms are booked. This is also Everton’s last year at Goodison Park. I think the new stadium will bring more people into the city and it will be used seven days a week.”